Recently, we heard about hedge funds losing money on their

Recently, we heard about hedge funds losing money on their short positions placed on shares of GameStop. On January 27, Andrew Left of Citron Research said in a YouTube video: “Covered the majority of the short in the $90s at a loss of 100%.” Suppose Citron shorted 1 million shares with initial margin at 50% and maintenance margin at 35%. Ignore all commission fees. Use Andrew Left’s statement that they closed all positions at 100% loss at $90 per share to imply the initial price at which the short sale was executed. What is the price at which Citron placed the short sale?

 

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